Lumax to double revenues in 5 yrs with Rs 3K cr investment

Q: Take us through your capex plans first. I believe that you have Rs 300 crore outlay for the next few years and that is going to lead to your turnover doubling. Take us through those details?

A: On November 28, we completed 25 years of listing on the Bombay Stock Exchange. In addition, 2014 year marked 30 years completion of our relationship with Stanley Electric Company of Japan. That is obviously the past but going forward we are in a very good positions where the order books are almost close to about Rs 600 crore for the next three to five years. We have plan to invest in Greenfield and Brownfield sites as well as technology for about an outlay of about Rs 300 crore which would helps us to double our revenues in next five years.

Q: Maruti is your biggest client as of now. How much of your total revenues do you get from Maruti at this point in time and what sort of outlook can you give us with regards to your relationship with the company? It comes at a time when Maruti reported very good sales for November as well.

A: Maruti continues to remain our number one client. As of now the revenue baskets about 38 percent of Lumax Industries revenue come from Maruti Suzuki. We also are at a largest lighting player for Maruti Suzuki. A market penetration within Maruti itself is about 70 percent for lighting. Fundamentally, we had invested for Maruti proactively over last three years in our newest facility which is at Bawal and that is under commissioned.

We are 100 percent on the Swift, Alto and Ritz and other platforms as well. Obviously, Maruti has remained consistent with its volumes for the last two to three years. However with this upturned coming in and the new model lineup that Maruti has we are expecting a good boost with Maruti’s growth coming in and we also have plans to support its Gujarat facility.

Q: What about your exports? How much does it contribute to your total sales at present?

A: As of now, it is about 4 percent. However, Lumax continues to focus on the domestic market. We have a market penetration on over all India an about 55 percent. The competition in this segment is intense and hence the company focuses on this domestic market more. You also have to understand that lighting itself is a very fragile part it is not very logistic friendly so we continue to export orders on customers like Volkswagen, specifically Audi, Jaguar Land Rover (JLR) even truck lights which is supporting Case New Holland and John Deere. So these are exporting into western in terms of Europe as well as US.

Q: What is your total order book stand at this point in time?

A: As of now for the next three years the current order books is about Rs 600 crore.

Q: In first half of the year, we have seen that your sales have grown roughly around by 6 percent but you have given a guidance that this year you are going to see 10 percent jump so second half of the year going to be much better?

A: That is right; we are expecting sudden growth not just by volumes but also new platforms. We have to understand that lighting is also a product which also goes through continuous refreshing so we expecting both volumes growth as well as new platform growth.